KP Tissue Releases Second Quarter 2022 Financial Results

KP Tissue Inc. (KPT) (TSX: KPT) reports the Q2 2022 financial and operational results of KPT and Kruger Products L.P. (KPLP). Kruger Products is Canada’s leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and BonterraTM) and the Away-From-Home (AFH) market and continues to expand in the U.S. Consumer market with the White Cloud® brand and premium private label products. KPT currently holds a 14.1% interest in KPLP.

KPLP Q2 2022 Business and Financial Highlights
• Revenue was $397.5 million in Q2 2022 compared to $339.3 million in Q2 2021, an increase of $58.2 million or 17.1%.
• Adjusted EBITDA1 was $11.8 million in Q2 2022, compared to $37.3 million in Q2 2021, a decrease of 68.3%.
• Net loss was $35.5 million in Q2 2022 compared to net income of $2.2 million in Q2 2021, a decrease of $37.7 million.
• Declared a quarterly dividend of $0.18 per share to be paid on October 17, 2022.

“We delivered another strong quarter of double-digit revenue growth in Q2 2022, but the depth, breadth and speed of inflation severely impacted our operating results and lowered profitability,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “We expect a partial recovery in the third quarter as successive pricing increases begin catching up with the inflationary curve, productivity gains are felt at our Memphis operations, and extensive cost management initiatives take effect. By the end of the fourth quarter, we anticipate a full recovery based on peaked pulp prices and reduced freight rates along with additional pricing adjustments. Consequently, we are highly confident about returning to a normalized margin in the near term.”

“While addressing temporary disruptions head-on, we continued investments in our Sherbrooke Expansion project and AI network implementations, supported our Bonterra, UltraLuxe and White Cloud launches with targeted marketing campaigns, as well as maintained our focus on our sustainable development program. We take particular pride in being ranked fifth overall among the Best 50 Corporate Citizens for 2022 in Canada and first among tissue paper companies, according to latest research from Corporate Knights,” Mr. Bianco added.
details at: https://www.kptissueinc.com/gpc/_media/Document/kp-tissue-inc-q2-2022-earnings-release-eng-vf.pdf

Related Posts

Stora Enso completes the divestment of its Maxau paper site to Schwarz Produktion

Stora Enso has completed the divestment of its Maxau paper production site in Germany, and all related assets to Schwarz Produktion, part of Schwarz Group. The divestment announced on 13 September 2022 was completed today after regulatory approvals. The enterprise value of the transaction is approximately EUR 210 million. The transaction will reduce Stora Enso’s annual SC (supercalendered) paper capacity by 530,000 tonnes. Based on the 2022 figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 385 million. Subject to closing date adjustments, Stora Enso will book a one-time disposal gain of approximately EUR 55 million in its IFRS operating profit in the first quarter of 2023, considered as an item affecting comparability.

Mondi sets ambitious science-based plans to transition to Net-Zero by 2050

Global packaging and paper leader Mondi has accelerated plans to take action on climate by committing to transition to Net-Zero by 2050. This next step builds on almost two decades of progress, including a 45% reduction in specific greenhouse gas (GHG) emissions against a 2004 baseline and science-based targets approved by the Science Based Targets initiative (SBTi) in 2019. "The climate crisis is the most urgent risk facing society and businesses must take decisive action to mitigate their impact. Mondi has a long track record of investing in our operations to reduce our GHG emissions and the Board’s approval of our new Net-Zero plan reinforces our commitment to contributing to a better world. The adoption of science-based targets in line with 1.5°C is an important milestone in our journey to Net-Zero. However taking action today is an absolute imperative and we already have a clear roadmap to achieve our 2025 milestones." Andrew King, Mondi’s Group CEO
Back To Top
×Close search
Search